TheStar
KUALA LUMPUR: ING Funds Bhd says most of its 23 funds performed well this year, with one paying out as much as 30 per cent returns a year despite the sluggish economic climate.
The funds under management now are worth RM3.4 billion, higher than last year's RM2.7 billion, said CEO Datuk Steve Ong to reporters on the sidelines of the two-day 14th Malaysian Capital Market Summit 2009 which began yesterday.
ING Funds is the Malaysian affiliate of ING Investment Management, the investment arm of the ING Group.
Launched in 2004, ING Funds had become one of the fast-growing private unit trust management companies.
Ong said the "appetite" for unit trust schemes was still there despite the projected slower pace of economic recovery next year.
"Demand is huge out there, but it is subject to investors' needs whether it is for wealth, education or even retirement," he said.
Ong said there was ample liquidity in the financial system to be tapped, namely the massive Employees Provident Fund and bank deposits.
"Even in post-retirement, retirees need someone to manage his or her money properly, if not their money will be gone in just two or three years if it is spent freely," he said.
Next year, besides offering new products, the company planned to focus more on unitholders in managing their investments.
"We will assist them in managing their investments so that they will know the progress of their investments.
"We may give them more fund choices to help them re-balance their position at any economic situation," he added. - Bernama
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Friday, December 4, 2009
Wednesday, August 26, 2009
Asset managers: Further upheavals expected within next decade
TheEdge
KUALA LUMPUR: The worst of the current economic crisis may be over in 2010 but asset managers have not ruled out further upheavals within the next decade.
According to a survey on 225 asset managers in 30 countries carried out by Principal Global Investors, most respondents do not rule out more systemic crises in the next decade. It said the scale of recent economic stimulus in G20 countries was expected to stoke inflation.
“We are not completely out of the credit crunch yet. Getting credit going is the key initiative for central banks for the next year. They have been flooding the market with liquidity in hope of getting credit moving again.
“But a lot of times, this is just simply liquidity. It is not generating new credit. And there is recognition that credit is a necessary evil in the economy,” COO of Principal Global Investors Barbara McKenzie said at a CIMB Principal Asset Management Bhd media briefing yesterday.
She added that until the market could get back on its feet again, it would continue to need access to credit and thus more government aid.
NEW CREDIT NEEDED TO FUEL ECONOMY... Markets need access to credit until they get back on their feet again, says Principal Global Investors COO Barbara McKenzie (right) at CIMB-Principal Asset Management Bhd media briefing in Kuala Lumpur yesterday. Also present were CIMB-Principal Asset Management chief executive Datuk Noripah Kamso (left) and Principal Global Investors (S) Ltd MD for Asia ex Japan Kirk West. Photo by Suhaimi Yusuf
The survey also found that 45% of its respondents did not expect the worst of the crisis to be over till the first half of next year while 25% expected it to be even later.
The 225 asset managers and pension funds surveyed were responsible for collective assets worth US$18.2 trillion (RM63.9 trillion) as at April 2009.
“We are now primarily driven by retail industries locally, significant fiscal stimulus and low interest rates. All these will naturally fade.
“However, the stimulus will eventually have to be removed and the key timing to withdraw this stimulus and how it is removed are important to consider as we are juggling between growth and potential inflation.
“But that will be in the second half of 2010,” Principal Global Investors (S) Ltd managing director for Asia ex Japan, Kirk West said.
On the survey findings, West added that although it was carried out during “the eye of the storm”, the results could be used to study investor behaviour moving forward.
“People have lost confidence in a lot of the longer-term growth assets. The whole concept of equity risk premium has made people feel uncomfortable. They will now be looking at increased liquidity.
“Several things eroded investor confidence during the crisis, especially the fact that diversification of assets hasn’t worked in the short term because of deleveraging. Going forward, however, we still believe in diversification,” said West.
He added that asset managers also expected further regulatory pressures to intensify over the next three years which may result in fee compression.
Consequently, West said a majority of firms had shown a significant revenue decline of 35%.
“One of the key issues we’ve seen in the last 12 months is compensation within the finance industry. We expect one outcome will be greater alignment in terms of compensation. So, maybe people will have lower fixed compensation, and a higher component of variable compensation and this will be more aligned with the performance of the underlying funds,” he said.
McKenzie said there was already a movement of money away from some of the traditional hedge funds centre that had light regulations to other offshore jurisdictions with higher regulatory standard as investors started understanding a need for greater regulation post crisis.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: The worst of the current economic crisis may be over in 2010 but asset managers have not ruled out further upheavals within the next decade.
According to a survey on 225 asset managers in 30 countries carried out by Principal Global Investors, most respondents do not rule out more systemic crises in the next decade. It said the scale of recent economic stimulus in G20 countries was expected to stoke inflation.
“We are not completely out of the credit crunch yet. Getting credit going is the key initiative for central banks for the next year. They have been flooding the market with liquidity in hope of getting credit moving again.
“But a lot of times, this is just simply liquidity. It is not generating new credit. And there is recognition that credit is a necessary evil in the economy,” COO of Principal Global Investors Barbara McKenzie said at a CIMB Principal Asset Management Bhd media briefing yesterday.
She added that until the market could get back on its feet again, it would continue to need access to credit and thus more government aid.
NEW CREDIT NEEDED TO FUEL ECONOMY... Markets need access to credit until they get back on their feet again, says Principal Global Investors COO Barbara McKenzie (right) at CIMB-Principal Asset Management Bhd media briefing in Kuala Lumpur yesterday. Also present were CIMB-Principal Asset Management chief executive Datuk Noripah Kamso (left) and Principal Global Investors (S) Ltd MD for Asia ex Japan Kirk West. Photo by Suhaimi Yusuf
The survey also found that 45% of its respondents did not expect the worst of the crisis to be over till the first half of next year while 25% expected it to be even later.
The 225 asset managers and pension funds surveyed were responsible for collective assets worth US$18.2 trillion (RM63.9 trillion) as at April 2009.
“We are now primarily driven by retail industries locally, significant fiscal stimulus and low interest rates. All these will naturally fade.
“However, the stimulus will eventually have to be removed and the key timing to withdraw this stimulus and how it is removed are important to consider as we are juggling between growth and potential inflation.
“But that will be in the second half of 2010,” Principal Global Investors (S) Ltd managing director for Asia ex Japan, Kirk West said.
On the survey findings, West added that although it was carried out during “the eye of the storm”, the results could be used to study investor behaviour moving forward.
“People have lost confidence in a lot of the longer-term growth assets. The whole concept of equity risk premium has made people feel uncomfortable. They will now be looking at increased liquidity.
“Several things eroded investor confidence during the crisis, especially the fact that diversification of assets hasn’t worked in the short term because of deleveraging. Going forward, however, we still believe in diversification,” said West.
He added that asset managers also expected further regulatory pressures to intensify over the next three years which may result in fee compression.
Consequently, West said a majority of firms had shown a significant revenue decline of 35%.
“One of the key issues we’ve seen in the last 12 months is compensation within the finance industry. We expect one outcome will be greater alignment in terms of compensation. So, maybe people will have lower fixed compensation, and a higher component of variable compensation and this will be more aligned with the performance of the underlying funds,” he said.
McKenzie said there was already a movement of money away from some of the traditional hedge funds centre that had light regulations to other offshore jurisdictions with higher regulatory standard as investors started understanding a need for greater regulation post crisis.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Singapore's UOB Asset, India's UTI in funds tie-up
BusinessTimes
SINGAPORE: Singapore's United Overseas Bank (UOB) said yesterday its fund management arm has formed an alliance with a unit of India's UTI Asset Management to jointly launch and distribute mutual funds.
"The first initiative of the alliance is an equity fund that both parties have jointly developed," UOB Asset Management (UOBAM) said in a statement.
"The features of the fund will be announced at a later date."
UOBAM manages about S$13.5 billion (S$1 = RM2.44) in assets and has business operations in Singapore, Brunei, Japan, Malaysia, Taiwan and Thailand.
Its partner UTI International (Singapore) is a joint venture involving India's largest mutual fund company UTI, Shinsei Investments and another company.
UTI manages around US$15 billion (US$1 = RM3.51) and its funds are distributed in 450 of India's 620 districts, UOBAM said. - Reuters
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
SINGAPORE: Singapore's United Overseas Bank (UOB) said yesterday its fund management arm has formed an alliance with a unit of India's UTI Asset Management to jointly launch and distribute mutual funds.
"The first initiative of the alliance is an equity fund that both parties have jointly developed," UOB Asset Management (UOBAM) said in a statement.
"The features of the fund will be announced at a later date."
UOBAM manages about S$13.5 billion (S$1 = RM2.44) in assets and has business operations in Singapore, Brunei, Japan, Malaysia, Taiwan and Thailand.
Its partner UTI International (Singapore) is a joint venture involving India's largest mutual fund company UTI, Shinsei Investments and another company.
UTI manages around US$15 billion (US$1 = RM3.51) and its funds are distributed in 450 of India's 620 districts, UOBAM said. - Reuters
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Monday, August 24, 2009
Fund managers cut exposure on China
TheEdge
KUALA LUMPUR: Fund managers have recently shifted their investment focus to Europe, the Middle East and Africa (EMEA) away from Asia, especially China, according to one Bank of America Merill Lynch (BOA-ML) survey.
It said based on its August survey, there was a "big rotation" to EMEA and away from Asia.
In a statement last Thursday, the bank said the main driver of this investment pattern was the "switching" to Russia and out of China, which saw its stock market entering bear territory last week, having plunged over 20% from the year’s peak.
A total of 204 fund managers, managing a total of US$554 billion (RM1.95 trillion), participated in the global survey from Aug 7-12. A total of 177 managers, armed with US$370 billion, participated in the regional surveys.
BOA-ML noted that in two years, China saw the lowest number of overweight positions by fund managers while South Korea got its first overweight call.
It added that investors had also sharply cut exposure to Chinese equities to "neutral".
The survey also showed more investors were becoming less optimistic in August on China economic growth compared to June while optimism on European growth prospects surged in August.
The most favoured global emerging market (GEM) markets are growth or liquidity plays such as Russia, Turkey, and Indonesia while the least favoured are the defensive markets such as Chile and Malaysia.
On specific sectors, BOA-ML said "consumer discretionary" and financials were the only sectors tagged with overweight calls.
"Most unloved sectors in GEM portfolios are utilities and healthcare," it said, adding that TECHNOLOGY [] stocks were the strongest engines behind the early recovery of GEM markets.
BOA-ML said globally, technology too remained the number one sector, with 28% of the global panel putting an overweight stance on the industry.
The bank said investors within GEM were positive about banks with a net 17% of fund managers in the regional survey overweight on bank stocks. It said 60% of the fund managers believed global corporate earnings could rise by over 10% over the next 12 months. Interestingly, it added, balance sheet repair was becoming less of a concern to investors.
Meanwhile, on the local front, fund managers like HwangDBS Investment Management Bhd is also bullish on finance stocks.
Its head of equities Gan Eng Peng told The Edge Financial Daily that the finance sector offered one of the best exposures to the economic recovery story.
Gan said despite a recent increase in volatility within the financial sector, valuations remained attractive over the next one to three years.
"Even at current valuations, the global financial sector represents a window of opportunity which has not been open for the last 10 to 20 years," he added.
Gan said as for the PLANTATION [] sector, shares of large-cap plantation companies in Malaysia had hardly corrected and their valuations remained too high.
"We think investors can get much better value and faster returns in the Indonesian names listed in Singapore," he added.
Gan said it also remained positive on the CONSTRUCTION [] sector, as it had performed relatively well in the current market rebound.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Fund managers have recently shifted their investment focus to Europe, the Middle East and Africa (EMEA) away from Asia, especially China, according to one Bank of America Merill Lynch (BOA-ML) survey.
It said based on its August survey, there was a "big rotation" to EMEA and away from Asia.
In a statement last Thursday, the bank said the main driver of this investment pattern was the "switching" to Russia and out of China, which saw its stock market entering bear territory last week, having plunged over 20% from the year’s peak.
A total of 204 fund managers, managing a total of US$554 billion (RM1.95 trillion), participated in the global survey from Aug 7-12. A total of 177 managers, armed with US$370 billion, participated in the regional surveys.
BOA-ML noted that in two years, China saw the lowest number of overweight positions by fund managers while South Korea got its first overweight call.
It added that investors had also sharply cut exposure to Chinese equities to "neutral".
The survey also showed more investors were becoming less optimistic in August on China economic growth compared to June while optimism on European growth prospects surged in August.
The most favoured global emerging market (GEM) markets are growth or liquidity plays such as Russia, Turkey, and Indonesia while the least favoured are the defensive markets such as Chile and Malaysia.
On specific sectors, BOA-ML said "consumer discretionary" and financials were the only sectors tagged with overweight calls.
"Most unloved sectors in GEM portfolios are utilities and healthcare," it said, adding that TECHNOLOGY [] stocks were the strongest engines behind the early recovery of GEM markets.
BOA-ML said globally, technology too remained the number one sector, with 28% of the global panel putting an overweight stance on the industry.
The bank said investors within GEM were positive about banks with a net 17% of fund managers in the regional survey overweight on bank stocks. It said 60% of the fund managers believed global corporate earnings could rise by over 10% over the next 12 months. Interestingly, it added, balance sheet repair was becoming less of a concern to investors.
Meanwhile, on the local front, fund managers like HwangDBS Investment Management Bhd is also bullish on finance stocks.
Its head of equities Gan Eng Peng told The Edge Financial Daily that the finance sector offered one of the best exposures to the economic recovery story.
Gan said despite a recent increase in volatility within the financial sector, valuations remained attractive over the next one to three years.
"Even at current valuations, the global financial sector represents a window of opportunity which has not been open for the last 10 to 20 years," he added.
Gan said as for the PLANTATION [] sector, shares of large-cap plantation companies in Malaysia had hardly corrected and their valuations remained too high.
"We think investors can get much better value and faster returns in the Indonesian names listed in Singapore," he added.
Gan said it also remained positive on the CONSTRUCTION [] sector, as it had performed relatively well in the current market rebound.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
3.56 sen payout for Pru fund unit holders
BusinessTimes
PRUDENTIAL Fund Management Bhd (PFMB) has declared an income distribution of 3.56 sen per unit to unit holders of Prudential Balanced Fund. The distribution is equivalent to 5 per cent on Net Asset Value of the Fund as at 31 July 2009.
All unit holders who have maintained their unit holdings as at 24 August 2009 will be entitled to this income distribution.
PRUbalanced fund invests in a mixed portfolio of companies with good dividend yield and low price volatility and a portfolio of investment-grade fixed-income securities.
The Fund has met is objective of providing investors with capital appreciation and a reasonable level of income over the longer term. The Fund charted a 1, 3 and 5-year return of 5.01 per cent, 32.27 per cent and 41.30 per cent respectively.
Since its inception on 29 May 2001, the Fund recorded a return of 117.98 per cent, outperforming its benchmark, by 48.20 per cent.
This would be the fourth income distribution for the Fund since its inception.
“The Fund benefited from selected big-cap holdings especially the banks, as investors positioned their funds to reflect the new weighting in the new FBMKLCI index. The banking sector comprises a major sector weighting for the new index. The Fund’s exposure in corporate bonds also helped the Fund’s relative performance as corporate bonds yield higher returns than the benchmark RAM quant shop Medium Index in June,” PFMB CEO-Designate Thomas Cheong said in a statement.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
PRUDENTIAL Fund Management Bhd (PFMB) has declared an income distribution of 3.56 sen per unit to unit holders of Prudential Balanced Fund. The distribution is equivalent to 5 per cent on Net Asset Value of the Fund as at 31 July 2009.
All unit holders who have maintained their unit holdings as at 24 August 2009 will be entitled to this income distribution.
PRUbalanced fund invests in a mixed portfolio of companies with good dividend yield and low price volatility and a portfolio of investment-grade fixed-income securities.
The Fund has met is objective of providing investors with capital appreciation and a reasonable level of income over the longer term. The Fund charted a 1, 3 and 5-year return of 5.01 per cent, 32.27 per cent and 41.30 per cent respectively.
Since its inception on 29 May 2001, the Fund recorded a return of 117.98 per cent, outperforming its benchmark, by 48.20 per cent.
This would be the fourth income distribution for the Fund since its inception.
“The Fund benefited from selected big-cap holdings especially the banks, as investors positioned their funds to reflect the new weighting in the new FBMKLCI index. The banking sector comprises a major sector weighting for the new index. The Fund’s exposure in corporate bonds also helped the Fund’s relative performance as corporate bonds yield higher returns than the benchmark RAM quant shop Medium Index in June,” PFMB CEO-Designate Thomas Cheong said in a statement.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
AmFirst REIT posts moderate Q1 growth
BusinessTimes
Am ARA REIT Managers Sdn Bhd, the Manager of AmFIRST Real Estate Investment Trust (AmFIRST), has posted revenue of RM23.65 million for the first quarter ended 30 June 2009, a 5 per cent increase from RM22.52 million registered in the previous corresponding quarter.
Net property income for the period grew marginally to RM15.23 million compared to RM15.07 million in the corresponding period last year, while profit after tax rose 10 per cent to RM10.58 million against RM9.60 million before. Earnings per unit was 2.47 sen.
The improved performance arose from the contribution of income derived from positive rental reversions recorded from its three properties - Kelana Brem Towers, The Summit Subang USJ and Menara AmBank.
“AmFIRST achieved a set of favourable income for the first quarter despite the current global economic slowdown, that have also impacted the REITs industry worldwide,” chief executive officer Lim Yoon Peng said in a statement.
He said the properties also continue to attract and retain quality tenants, thus generating steady rental income for the Trust.
For this year, the manager has lined up enhancement and repositioning works for its properties. The first building involved – Menara Merais in Petaling Jaya - should see its renovation works completed by November this year.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Am ARA REIT Managers Sdn Bhd, the Manager of AmFIRST Real Estate Investment Trust (AmFIRST), has posted revenue of RM23.65 million for the first quarter ended 30 June 2009, a 5 per cent increase from RM22.52 million registered in the previous corresponding quarter.
Net property income for the period grew marginally to RM15.23 million compared to RM15.07 million in the corresponding period last year, while profit after tax rose 10 per cent to RM10.58 million against RM9.60 million before. Earnings per unit was 2.47 sen.
The improved performance arose from the contribution of income derived from positive rental reversions recorded from its three properties - Kelana Brem Towers, The Summit Subang USJ and Menara AmBank.
“AmFIRST achieved a set of favourable income for the first quarter despite the current global economic slowdown, that have also impacted the REITs industry worldwide,” chief executive officer Lim Yoon Peng said in a statement.
He said the properties also continue to attract and retain quality tenants, thus generating steady rental income for the Trust.
For this year, the manager has lined up enhancement and repositioning works for its properties. The first building involved – Menara Merais in Petaling Jaya - should see its renovation works completed by November this year.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Thursday, March 19, 2009
EPF returns on the slide
TheStar
Difficult to sustain payouts above 5% in coming years
PETALING JAYA: Employees Provident Fund (EPF) contributors may have to be contented with lower returns in the coming years as the country’s biggest pension fund struggles to boost income amid steep falls in interest rates and a weak equity market.
Analysts said given the pension fund’s size and strict mandate, it would be very difficult to sustain payouts of above 5% in the coming years.
The 4.5% dividend declared for 2008 on Monday was generally well received, despite coming in lower than the 5.8% in 2007.
There were calls for a review from various parties demanding a higher payout, but some quarters said the pension fund had done well in safeguarding the nation’s retirement savings amid the current economic crisis.
The question now is how will EPF fare in 2009 and beyond?
Already the fund has warned that this year’s payout would be less than that for 2008.
Weak equity markets will continue to hurt EPF in the near term, but in the longer term, the fund’s performance will also be determined by the returns it gets from investing in low-risk assets such as government bonds.
The EPF had allocated a quarter of its RM342bil investment funds for higher yielding government papers. But as these higher yielding notes expire, the fund must purchase new issues which will now come with lower returns.
Malaysian Government Securities (MGS) debt papers maturing in three and five years are currently yielding less than 4% at today’s prices.
In comparison, MGS five-year notes yielded more than 5% a decade ago and above 7% during the 1997/98 Asian financial crisis.
Another big chunk of EPF holdings is in highly rated corporate bonds and low-risk guaranteed loans.
However, the global economic turmoil has cut the supply of new bonds coming into the market.
Cheaper lending rates had also reduced interest income from loans given out.
Investment in bonds and loans made up 40% of EPF’s total investments as at the end of last year.
Dwindling yields from these asset classes have been a drag on EPF’s income for the past couple of years.
That the EPF was able to fork out steady dividends of above 5% between 2004 and 2007 was mainly due to gains from investments in equities.
The collapse in global equities last year, however, had eroded the value of EPF’s shareholdings, forcing it to make a provision of RM4.69bil to account for the lower value of its shares, both domestically and abroad.
The KL Composite Index fell 40% in 2008 and was down 3.3% so far this year at yesterday’s closing of 847.96 points.
Also, the economic slowdown has dragged down corporate profits. This, in turn, has impaired their ability to pay out dividends to shareholders, further reducing the return on investments for EPF.
The EPF has stakes in more than 100 companies listed on Bursa Malaysia, as well as smaller stakes in a number of big listed firms overseas.
Income from equities accounted for 35%, or RM6.67bil, of EPF’s total gross investment income last year.
Just how bad EPF’s dividend payouts will be affected by the current market situation remains to be seen.
It is worth noting that under the law, EPF has to maintain a dividend rate of at least 2.5% annually. The dividend must come from income generated from its investments.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Difficult to sustain payouts above 5% in coming years
PETALING JAYA: Employees Provident Fund (EPF) contributors may have to be contented with lower returns in the coming years as the country’s biggest pension fund struggles to boost income amid steep falls in interest rates and a weak equity market.
Analysts said given the pension fund’s size and strict mandate, it would be very difficult to sustain payouts of above 5% in the coming years.
The 4.5% dividend declared for 2008 on Monday was generally well received, despite coming in lower than the 5.8% in 2007.
There were calls for a review from various parties demanding a higher payout, but some quarters said the pension fund had done well in safeguarding the nation’s retirement savings amid the current economic crisis.
The question now is how will EPF fare in 2009 and beyond?
Already the fund has warned that this year’s payout would be less than that for 2008.
Weak equity markets will continue to hurt EPF in the near term, but in the longer term, the fund’s performance will also be determined by the returns it gets from investing in low-risk assets such as government bonds.
The EPF had allocated a quarter of its RM342bil investment funds for higher yielding government papers. But as these higher yielding notes expire, the fund must purchase new issues which will now come with lower returns.
Malaysian Government Securities (MGS) debt papers maturing in three and five years are currently yielding less than 4% at today’s prices.
In comparison, MGS five-year notes yielded more than 5% a decade ago and above 7% during the 1997/98 Asian financial crisis.
Another big chunk of EPF holdings is in highly rated corporate bonds and low-risk guaranteed loans.
However, the global economic turmoil has cut the supply of new bonds coming into the market.
Cheaper lending rates had also reduced interest income from loans given out.
Investment in bonds and loans made up 40% of EPF’s total investments as at the end of last year.
Dwindling yields from these asset classes have been a drag on EPF’s income for the past couple of years.
That the EPF was able to fork out steady dividends of above 5% between 2004 and 2007 was mainly due to gains from investments in equities.
The collapse in global equities last year, however, had eroded the value of EPF’s shareholdings, forcing it to make a provision of RM4.69bil to account for the lower value of its shares, both domestically and abroad.
The KL Composite Index fell 40% in 2008 and was down 3.3% so far this year at yesterday’s closing of 847.96 points.
Also, the economic slowdown has dragged down corporate profits. This, in turn, has impaired their ability to pay out dividends to shareholders, further reducing the return on investments for EPF.
The EPF has stakes in more than 100 companies listed on Bursa Malaysia, as well as smaller stakes in a number of big listed firms overseas.
Income from equities accounted for 35%, or RM6.67bil, of EPF’s total gross investment income last year.
Just how bad EPF’s dividend payouts will be affected by the current market situation remains to be seen.
It is worth noting that under the law, EPF has to maintain a dividend rate of at least 2.5% annually. The dividend must come from income generated from its investments.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Islamic funds’ asset growth likely to slow
TheStar
But long-term recovery is certain, says KFH
KUALA LUMPUR: The rate of asset growth of funds in Islamic financial institutions this year is expected to be slower than in 2008, says Kuwait Finance House (M) Bhd managing director Datuk K. Salman Younis.
He said this was due to the prevailing global economic downturn but added that long-term recovery was certain.
“We believe asset growth of Islamic funds will be back to its strong level once the global economy improves,” he said at the Dow Jones Islamic Market Indexes media briefing yesterday.
Salman said there was huge potential for Malaysia to be the leading Islamic financial hub in the region and for Islamic financing to be the country’s key pillar of growth.
According to The Banker, a global financing intelligence magazine, the top 500 Islamic financial institutions charted a 27.6% asset growth to US$639.1bil in 2008 compared with US$500.1bil the previous year.
The major contributors to asset growth for Islamic funds are Gulf Cooperation Council (GCC) countries (US$262.7bil); Asia (US$67.1bil), led by Malaysia; Australia/Europe/the United States (US$35.3bil); and non-GCC Middle East countries, Middle East and North Africa (US$248.3bil).
PricewaterhouseCoopers Taxation Services Sdn Bhd senior executive director (Islamic financial services practice) Jennifer Chang concurred with Salman’s view on Malaysia’s potential as the region’s Islamic financial hub.
For instance, she said, Malaysia’s takaful industry had doubled in asset size over the last five years and its penetration rate was expected to reach 20% by 2010, compared with 6.5% currently.
She added that Malaysia was the largest player with 20% share of the global takaful business worth US$4bil.
Chang also said that as at end-November 2008, there were 149 Islamic funds domicled and managed in Malaysia, compared with 131 in Saudi Arabia.
“This is despite Malaysia’s total Islamic assets under management being only US$4.64bil, compared with Saudi Arabia at US$13.9bil for the period under review,” she said.
As at April 2008, the total Islamic assets under management worldwide is believed to be US$33.9bil.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
But long-term recovery is certain, says KFH
KUALA LUMPUR: The rate of asset growth of funds in Islamic financial institutions this year is expected to be slower than in 2008, says Kuwait Finance House (M) Bhd managing director Datuk K. Salman Younis.
He said this was due to the prevailing global economic downturn but added that long-term recovery was certain.
“We believe asset growth of Islamic funds will be back to its strong level once the global economy improves,” he said at the Dow Jones Islamic Market Indexes media briefing yesterday.
Salman said there was huge potential for Malaysia to be the leading Islamic financial hub in the region and for Islamic financing to be the country’s key pillar of growth.
According to The Banker, a global financing intelligence magazine, the top 500 Islamic financial institutions charted a 27.6% asset growth to US$639.1bil in 2008 compared with US$500.1bil the previous year.
The major contributors to asset growth for Islamic funds are Gulf Cooperation Council (GCC) countries (US$262.7bil); Asia (US$67.1bil), led by Malaysia; Australia/Europe/the United States (US$35.3bil); and non-GCC Middle East countries, Middle East and North Africa (US$248.3bil).
PricewaterhouseCoopers Taxation Services Sdn Bhd senior executive director (Islamic financial services practice) Jennifer Chang concurred with Salman’s view on Malaysia’s potential as the region’s Islamic financial hub.
For instance, she said, Malaysia’s takaful industry had doubled in asset size over the last five years and its penetration rate was expected to reach 20% by 2010, compared with 6.5% currently.
She added that Malaysia was the largest player with 20% share of the global takaful business worth US$4bil.
Chang also said that as at end-November 2008, there were 149 Islamic funds domicled and managed in Malaysia, compared with 131 in Saudi Arabia.
“This is despite Malaysia’s total Islamic assets under management being only US$4.64bil, compared with Saudi Arabia at US$13.9bil for the period under review,” she said.
As at April 2008, the total Islamic assets under management worldwide is believed to be US$33.9bil.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Wednesday, March 18, 2009
OSK, Singapore iFast launch All-Equity Fund Index
TheEdge
KUALA LUMPUR: iFAST Capital Sdn Bhd, a joint venture between OSK Investment Bank Bhd and Singapore's iFAST Corporation Pte Ltd, launched the Fundsupermart.com All-Equity Fund Index (FEFI) yesterday.
It is the first index in Malaysia that tracks returns of unit trust funds, acting as a barometer of equity unit trusts' performance here. OSK Investment Bank holds 49% of the joint venture, while iFAST Corp owns the remaining 51%.
Speaking at the launch yesterday, Fundsupermart.com Malaysia and Singapore general manager Wong Sui Jau said up until now investors commonly looked at other indices to monitor the status of the stock market.
"Although these indices mirror the overall situation of the market, they are not specifically designed to provide up-to-date information of unit trusts in Malaysia.
"The launch of FEFI is well-timed in these recessionary times. We welcome FEFI because it encourages investors to plan for the future and take charge of their investments," he said.
FEFI provides investors with a measurement of the aggregate performance of all unique equity funds available to investors on FSM (www.fundsupermart.com).
Wong said there were currently 44 equity funds on the index, and FSM intended to increase this progressively.
The index will be calculated on a daily basis, with the level and the corresponding date displayed on the website.
The website also features a three-month historical index levels, a one-year performance chart and a monthly update on index performance. FEFI is currently available in Singapore, Hong Kong and Malaysia.
Wong said unlike most equity market indices, it was not asset weighted, meaning that returns for a fund with smaller fund size would have the same impact on the index as another fund with a larger fund size.
"The index return thus reflects the mean return of the underlying funds on an equally-weighted basis," he said.
He said the index would be reviewed twice a year (on June 30 and Dec 31) to incorporate funds that had been newly added to the platform. On the selection criteria, he said the funds must be open ended and must have a daily net asset value available.
Wong also said FSM planned to launch a bond fund index within the next few months.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: iFAST Capital Sdn Bhd, a joint venture between OSK Investment Bank Bhd and Singapore's iFAST Corporation Pte Ltd, launched the Fundsupermart.com All-Equity Fund Index (FEFI) yesterday.
It is the first index in Malaysia that tracks returns of unit trust funds, acting as a barometer of equity unit trusts' performance here. OSK Investment Bank holds 49% of the joint venture, while iFAST Corp owns the remaining 51%.
Speaking at the launch yesterday, Fundsupermart.com Malaysia and Singapore general manager Wong Sui Jau said up until now investors commonly looked at other indices to monitor the status of the stock market.
"Although these indices mirror the overall situation of the market, they are not specifically designed to provide up-to-date information of unit trusts in Malaysia.
"The launch of FEFI is well-timed in these recessionary times. We welcome FEFI because it encourages investors to plan for the future and take charge of their investments," he said.
FEFI provides investors with a measurement of the aggregate performance of all unique equity funds available to investors on FSM (www.fundsupermart.com).
Wong said there were currently 44 equity funds on the index, and FSM intended to increase this progressively.
The index will be calculated on a daily basis, with the level and the corresponding date displayed on the website.
The website also features a three-month historical index levels, a one-year performance chart and a monthly update on index performance. FEFI is currently available in Singapore, Hong Kong and Malaysia.
Wong said unlike most equity market indices, it was not asset weighted, meaning that returns for a fund with smaller fund size would have the same impact on the index as another fund with a larger fund size.
"The index return thus reflects the mean return of the underlying funds on an equally-weighted basis," he said.
He said the index would be reviewed twice a year (on June 30 and Dec 31) to incorporate funds that had been newly added to the platform. On the selection criteria, he said the funds must be open ended and must have a daily net asset value available.
Wong also said FSM planned to launch a bond fund index within the next few months.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
ASM declares income distribution of 6.25 sen per unit
TheStar
KUALA LUMPUR: Amanah Saham Malaysia (ASM) has announced an income distribution of 6.25 sen per unit for the financial year ending March 31, the lowest since the fund’s inception in 2000.
Last year, ASM paid 7.8 sen per unit in income distribution. The income distribution involved a total payout of RM407.58mil, said fund manager Permodalan Nasional Bhd (PNB) chairman Tun Ahmad Sarji Abdul Hamid.
“The payment will benefit a total of 402,513 unitholders who subscribe to 7.21 billion ASM units,” he told a press conference yesterday.
PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman said that the fund had the capacity to declare an income distribution of 7.92 sen per unit, but the group decided to reserve the income for the next financial year.
“We feel that 6.25 sen per unit is already in line with the market at this condition,” he said.
He attributed the diminished performance to the global economic downturn and the fund’s 25% increase in the number of units in circulation that had resulted in dividend dilution.
Declining to disclose PNB’s investment strategy going forward, Hamad said PNB’s objective remained creating long-term and sustainable returns for shareholders.
“We are a long-term player; we are looking for opportunity to buy more shares (with good fundamentals and are reasonably priced) that are good for the long term,” he said, adding that PNB was looking to issue more new products this year. He said ASM currently had RM2.1bil in cash.
ASM is a fixed-priced equity-income fund aimed at providing unitholders with a long-term investment opportunity by generating regular and competitive returns through a diversified portfolio of investments.
Up to last Friday, ASM had recorded gross income of RM440.73mil.
Dividend income from investments contributed RM219.33mil (49.76%), profit from the sale of shares generated RM137.84mil (31.28%) and the remaining RM83.56mil (18.96%) came from investments in short-term instruments.
The income distribution was based on the average monthly minimum balance held throughout ASM’s financial year.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Amanah Saham Malaysia (ASM) has announced an income distribution of 6.25 sen per unit for the financial year ending March 31, the lowest since the fund’s inception in 2000.
Last year, ASM paid 7.8 sen per unit in income distribution. The income distribution involved a total payout of RM407.58mil, said fund manager Permodalan Nasional Bhd (PNB) chairman Tun Ahmad Sarji Abdul Hamid.
“The payment will benefit a total of 402,513 unitholders who subscribe to 7.21 billion ASM units,” he told a press conference yesterday.
PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman said that the fund had the capacity to declare an income distribution of 7.92 sen per unit, but the group decided to reserve the income for the next financial year.
“We feel that 6.25 sen per unit is already in line with the market at this condition,” he said.
He attributed the diminished performance to the global economic downturn and the fund’s 25% increase in the number of units in circulation that had resulted in dividend dilution.
Declining to disclose PNB’s investment strategy going forward, Hamad said PNB’s objective remained creating long-term and sustainable returns for shareholders.
“We are a long-term player; we are looking for opportunity to buy more shares (with good fundamentals and are reasonably priced) that are good for the long term,” he said, adding that PNB was looking to issue more new products this year. He said ASM currently had RM2.1bil in cash.
ASM is a fixed-priced equity-income fund aimed at providing unitholders with a long-term investment opportunity by generating regular and competitive returns through a diversified portfolio of investments.
Up to last Friday, ASM had recorded gross income of RM440.73mil.
Dividend income from investments contributed RM219.33mil (49.76%), profit from the sale of shares generated RM137.84mil (31.28%) and the remaining RM83.56mil (18.96%) came from investments in short-term instruments.
The income distribution was based on the average monthly minimum balance held throughout ASM’s financial year.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
New HwangDBS IM fund hopes to capitalise on anticipated equities upturn
TheStar
KUALA LUMPUR: HwangDBS Investment Management Bhd (HwangDBS IM) sees recovery in US equities in the coming months and aims to capitalise on it now by launching a fund that tracks the Standard and Poor’s 500.
The S&P 500 Index was expected to recover by as early as the second half of this year on the back of economic stimulus measures, said HwangDBS IM chief executive officer and executive director Teng Chee Wai.
The S&P 500 had tumbled 52% from its peak of 1,565 points on Oct 9, 2007 to 754 points on Monday.
It is the most tracked index of American equities after the Dow Jones Industrial Average.
“The current market downturn should be seen as part and parcel of market cycles and, essentially, investing is certainly a long-term approach and should not be taken as a means to make a quick buck,” Teng told reporters at the launch of HwangDBS US Access 80, its first fund this year.
“The US Access 80 was mooted on the premise of capitalising on the bearish global sentiment to gain substantial headway into the S&P 500 at a highly attractive valuation,” he added.
“(S&P 500) comprises American stocks with the largest market capitalisation such as Coca-Cola, Wal-Mart and McDonald’s, that would, in boom time, cost investors an arm and a leg to own due to the premium they command,” he noted.
The US Access 80 is a mixed-asset, open-ended fund that aims to provide capital appreciation through exposure to the S&P 500 while endeavouring to preserve a minimum of 80% of the fund’s highest net asset value achieved, observed on a daily basis.
“The 20% growth aspect of the fund employs a dynamic and tactical allocation strategy to achieve derivative-type active asset exposure on the S&P 500 to ultimately deliver better-than-average results. This strategy allows progressive lock-in gains while raising the preservation limit,” Teng said.
“Investors today are looking for investments that guard them against the ravages of the financial crisis and by nature, we recognise the importance of avoiding investments in highly leveraged companies and complex derivatives,” he said.
HwangDBS IM aims to secure up to RM100mil in sales for the US Access 80 in the next six months.
Aimed at retail clients, the minimum initial investment for the fund is RM1,000.
It has an approved fund size of 300 million units retailing at RM1 each during the initial offer period.
According to Teng, HwangDBS IM will continue to launch more funds this year to boost its assets under management which stood at RM5.6bil at end-December.
A year earlier, its assets under management stood at RM6.1bil.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: HwangDBS Investment Management Bhd (HwangDBS IM) sees recovery in US equities in the coming months and aims to capitalise on it now by launching a fund that tracks the Standard and Poor’s 500.
The S&P 500 Index was expected to recover by as early as the second half of this year on the back of economic stimulus measures, said HwangDBS IM chief executive officer and executive director Teng Chee Wai.
The S&P 500 had tumbled 52% from its peak of 1,565 points on Oct 9, 2007 to 754 points on Monday.
It is the most tracked index of American equities after the Dow Jones Industrial Average.
“The current market downturn should be seen as part and parcel of market cycles and, essentially, investing is certainly a long-term approach and should not be taken as a means to make a quick buck,” Teng told reporters at the launch of HwangDBS US Access 80, its first fund this year.
“The US Access 80 was mooted on the premise of capitalising on the bearish global sentiment to gain substantial headway into the S&P 500 at a highly attractive valuation,” he added.
“(S&P 500) comprises American stocks with the largest market capitalisation such as Coca-Cola, Wal-Mart and McDonald’s, that would, in boom time, cost investors an arm and a leg to own due to the premium they command,” he noted.
The US Access 80 is a mixed-asset, open-ended fund that aims to provide capital appreciation through exposure to the S&P 500 while endeavouring to preserve a minimum of 80% of the fund’s highest net asset value achieved, observed on a daily basis.
“The 20% growth aspect of the fund employs a dynamic and tactical allocation strategy to achieve derivative-type active asset exposure on the S&P 500 to ultimately deliver better-than-average results. This strategy allows progressive lock-in gains while raising the preservation limit,” Teng said.
“Investors today are looking for investments that guard them against the ravages of the financial crisis and by nature, we recognise the importance of avoiding investments in highly leveraged companies and complex derivatives,” he said.
HwangDBS IM aims to secure up to RM100mil in sales for the US Access 80 in the next six months.
Aimed at retail clients, the minimum initial investment for the fund is RM1,000.
It has an approved fund size of 300 million units retailing at RM1 each during the initial offer period.
According to Teng, HwangDBS IM will continue to launch more funds this year to boost its assets under management which stood at RM5.6bil at end-December.
A year earlier, its assets under management stood at RM6.1bil.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Monday, March 2, 2009
AmIslamic to double assets under mgmt
TheEdge
AmIslamic Fund Management Sdn Bhd, a new unit under the AmInvestment Bank Group, expects its Islamic assets to more than double over the next two years.
AmInvestment Bank group chief executive officer for the Funds Management Division Datin Maznah Mahbob said, the Islamic assets under management were close to RM1 billion at present.
She said there were a lot of opportunities for customised Shariah-compliant investment solutions despite the global economic downturn.
"We have a dedicated team of Islamic specialists to provide customised Shariah-compliant investment solutions for institutional investors.
We are optimistic that we can easily more than double, the funds under management which are Islamic assets, within the next couple of years," she said at the media briefing on AmIslamic Funds Management here today.
Maznah said the Islamic fund management company plans to launch more than two new funds this year.
AmIslamic Funds Management which was incorporated last year offers a comprehensive and innovative range of Shariah-compliant funds management services that meet diverse investment needs.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
AmIslamic Fund Management Sdn Bhd, a new unit under the AmInvestment Bank Group, expects its Islamic assets to more than double over the next two years.
AmInvestment Bank group chief executive officer for the Funds Management Division Datin Maznah Mahbob said, the Islamic assets under management were close to RM1 billion at present.
She said there were a lot of opportunities for customised Shariah-compliant investment solutions despite the global economic downturn.
"We have a dedicated team of Islamic specialists to provide customised Shariah-compliant investment solutions for institutional investors.
We are optimistic that we can easily more than double, the funds under management which are Islamic assets, within the next couple of years," she said at the media briefing on AmIslamic Funds Management here today.
Maznah said the Islamic fund management company plans to launch more than two new funds this year.
AmIslamic Funds Management which was incorporated last year offers a comprehensive and innovative range of Shariah-compliant funds management services that meet diverse investment needs.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Thursday, February 19, 2009
SC relaxes rules for fund managers
TheEdge
KUALA LUMPUR: The Securities Commission (SC) is giving greater flexibility for licensed fund managers to provide innovative products, including those which incorporate alternative investment strategies.
The SC said yesterday the new “Guidelines on Wholesale Funds” were rationalised and streamlined to make it easier for fund managers to offer wholesale and retail products.
They would replace the “Guidelines on Restricted Investment Scheme” and the provisions on wholesale funds in the “Guidelines on Unit Trust Funds”.
It said the new guidelines were to enable fund managers to meet the more complex needs of sophisticated or professional investors, like high-net worth investors and institutional investors.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: The Securities Commission (SC) is giving greater flexibility for licensed fund managers to provide innovative products, including those which incorporate alternative investment strategies.
The SC said yesterday the new “Guidelines on Wholesale Funds” were rationalised and streamlined to make it easier for fund managers to offer wholesale and retail products.
They would replace the “Guidelines on Restricted Investment Scheme” and the provisions on wholesale funds in the “Guidelines on Unit Trust Funds”.
It said the new guidelines were to enable fund managers to meet the more complex needs of sophisticated or professional investors, like high-net worth investors and institutional investors.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Thursday, February 12, 2009
AmInvestment Bank plans 10 funds this year
TheStar
KUALA LUMPUR: AmInvestment Bank Group plans to launch up to 10 funds this year, said its director (retail funds) Ng Chze How.
Currently, it has 43 unit trust funds marketed under its retail brand AmMutual and two exchange-traded funds under AmInvestment Bank Group.
“We launched eight unit trust products in 2008. Based on market demand and situation, we expect to maintain this kind of momentum this year,” Ng said at the launch of its first unit trust fund for the year, AmTriple 3O-Capital Protected.
Ng said the fund was expected to provide double-digit returns after three years.
The AmTriple is a closed-end fund linked to the best performance chosen from three dynamic indices which provide diversified exposure to three main asset classes - equity, commodity and money market.
AmTriple 3O has an authorised fund size of 200 million units.
The minimum and subsequent investment amount is RM5,000. — Bernama
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: AmInvestment Bank Group plans to launch up to 10 funds this year, said its director (retail funds) Ng Chze How.
Currently, it has 43 unit trust funds marketed under its retail brand AmMutual and two exchange-traded funds under AmInvestment Bank Group.
“We launched eight unit trust products in 2008. Based on market demand and situation, we expect to maintain this kind of momentum this year,” Ng said at the launch of its first unit trust fund for the year, AmTriple 3O-Capital Protected.
Ng said the fund was expected to provide double-digit returns after three years.
The AmTriple is a closed-end fund linked to the best performance chosen from three dynamic indices which provide diversified exposure to three main asset classes - equity, commodity and money market.
AmTriple 3O has an authorised fund size of 200 million units.
The minimum and subsequent investment amount is RM5,000. — Bernama
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Monday, February 2, 2009
SC approves three new foreign IFMCs
TheEdge
KUALA LUMPUR: The Securities Commission (SC) has given approval for three foreign Islamic fund management companies (IFMCs) to start operations in Malaysia.
The regulator said in a statement that the three are Aberdeen Islamic Asset Management Sdn Bhd, BNP Paribas Islamic Asset Management Sdn Bhd and Nomura Islamic Asset Management Sdn Bhd.
It said the three companies already have presence in the conventional asset management industry in Malaysia as part of the five licences issued under a special scheme announced in 2005 to broaden international participation in the local capital market.
SC said the three companies' interest to further expand their fund management business indicated their confidence in the Malaysian fund management industry, and reaffirmed the growing interest among international players to make Malaysia the global hub for Islamic fund and wealth management activities.
In granting the approval, SC pointed out that it had considered among other things the scope of operations that would be established by the three IFMCs in Malaysia, their fund management experience, brand value, expertise in various markets, geographical presence, and compliance and risk management capabilities.
"Despite the global slowdown, the coming on board of these three international players reflects the strong growth potential in niche areas like Islamic fund management," said SC chairman Datuk Seri Zarinah Anwar.
Meanwhile, Tokyo-based Nomura Asset Management Co Ltd president and CEO Atsushi Yoshikawa said the company planned to position Islamic fund management as one of its important strategies, adding that the establishment of Nomura Islamic Asset Management would enable it to provide a wide range of products and services to Asia and the Middle East.
"We are very pleased to be awarded a licence for Islamic fund management in Malaysia. BNP Paribas Investment Partners is firmly committed to further develop its existing Islamic investment capabilities," said Vincent Camerlynck, global head of business development and member of the executive committee of BNP Paribas Investment Partners in Paris.
Aberdeen Asset Management Sdn Bhd manging director Gerald Ambrose said: "We're delighted that our application for an Islamic fund management licence has been approved as this enables us to expand into an important new area. The domestic Islamic finance sector has been growing rapidly."
Others who have been approved to establish operations are Kuwait Finance House (Malaysia), DBS Asset Management, CIMB-Principal Asset Management, Global Investment House and Reliance Asset Management.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: The Securities Commission (SC) has given approval for three foreign Islamic fund management companies (IFMCs) to start operations in Malaysia.
The regulator said in a statement that the three are Aberdeen Islamic Asset Management Sdn Bhd, BNP Paribas Islamic Asset Management Sdn Bhd and Nomura Islamic Asset Management Sdn Bhd.
It said the three companies already have presence in the conventional asset management industry in Malaysia as part of the five licences issued under a special scheme announced in 2005 to broaden international participation in the local capital market.
SC said the three companies' interest to further expand their fund management business indicated their confidence in the Malaysian fund management industry, and reaffirmed the growing interest among international players to make Malaysia the global hub for Islamic fund and wealth management activities.
In granting the approval, SC pointed out that it had considered among other things the scope of operations that would be established by the three IFMCs in Malaysia, their fund management experience, brand value, expertise in various markets, geographical presence, and compliance and risk management capabilities.
"Despite the global slowdown, the coming on board of these three international players reflects the strong growth potential in niche areas like Islamic fund management," said SC chairman Datuk Seri Zarinah Anwar.
Meanwhile, Tokyo-based Nomura Asset Management Co Ltd president and CEO Atsushi Yoshikawa said the company planned to position Islamic fund management as one of its important strategies, adding that the establishment of Nomura Islamic Asset Management would enable it to provide a wide range of products and services to Asia and the Middle East.
"We are very pleased to be awarded a licence for Islamic fund management in Malaysia. BNP Paribas Investment Partners is firmly committed to further develop its existing Islamic investment capabilities," said Vincent Camerlynck, global head of business development and member of the executive committee of BNP Paribas Investment Partners in Paris.
Aberdeen Asset Management Sdn Bhd manging director Gerald Ambrose said: "We're delighted that our application for an Islamic fund management licence has been approved as this enables us to expand into an important new area. The domestic Islamic finance sector has been growing rapidly."
Others who have been approved to establish operations are Kuwait Finance House (Malaysia), DBS Asset Management, CIMB-Principal Asset Management, Global Investment House and Reliance Asset Management.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Fund managers see muted recovery
TheStar
INVESTORS today are presented with attractive opportunities as considerable value has emerged from the downward spiral in asset values.
Many fund managers think the worst would soon be over and the markets on their way to recovery although it may be fairly muted given the severity of the losses incurred globally.
HwangDBS Investment Management Bhd chief executive officer and executive director Teng Chee Wai notes that investors may start investing again as they digest the bleak economic data in the first quarter of 2009.
“In fact, some investors have already been taking advantage of the lacklustre market to invest in equities that are now trading at relatively attractive prices,” he adds.
In 2008, every asset class – equities, bonds, commodities and properties went through a downward spiral.
Singapore’s Straits Times Index, Hong Kong’s Hang Seng and Japan’s Nikkei 225 plunged by more than 40% while crude oil was down 55% last year.
Dragged down by the equities markets, the net asset value (NAV) of the unit trust industry has dropped from RM169bil at end-2007 to RM135bil at end- November 2008. However, the 20% drop in NAV is relatively lower compared with the decline in the commodity and stock market indices.
“This is attributed to the nature of unit trusts – a collective investment scheme with reduced risks due to a diversified portfolio spread across securities, asset classes, managers and countries,” says Federation of Malaysian Unit Trust Managers (FMUTM) president Tunku Datuk Ya’acob Tunku Abdullah.
While volatility and poor economic conditions may persist in the near term, he says a well-diversified portfolio in a unit trust fund will be able to reduce risks and provide better cushion against market fluctuations.
Other industry experts observe that the general investor sentiment towards unit trusts, especially equity-based ones, will continue to be negative this year due to the crisis.
That is also due to the fact that many investors would be tightening their disposal or investible income in anticipation of a sharp economic slowdown.
However, they note that Malaysia’s banking system is still flushed with liquidity and hence, there would be appetite for investment products.
“Moreover, investors may be willing to consider investment products as we enter a phase of low interest rate environment,” HLG Unit Trust Bhd acting chief executive officer and executive director Teo Chang Seng said.
As such, the industry is expected to see more capital-protected funds being launched this year along with other low-risk fixed income products.
“In challenging times, many investors resort to the common notion that cash is king. They are also more concerned about capital preservation instead of potential yield,” says CIMB-Principal Asset Management Bhd chief executive officer J. Campbell Tupling.
Teng of HwangDBS notes that while the performance of some of its equity-based funds has been affected, its cash and money market funds have shown positive growth, year-on-year.
In view of the falling markets last year, most fund managers reported lower overall total sales and significant decrease in fund management fees as NAV of equity funds, whether local or global, declined considerably.
But on a positive note, redemptions were also considerably lower than in previous years, which is a good sign that investors are holding on rather than making panic sales.
The industry, which expects a rather quiet period this year, is stepping up its housekeeping efforts to improve internal and external efficiencies as well as enhance its delivery system.
For example, Pacific Mutual Fund Bhd is upgrading its administration and customer interface systems to achieve better connection and communication with its direct and third-party customers.
At the same time, HwangDBS is focusing on staff development and rewards to improve investors’ experience and after-sales service.
CIMB Wealth Advisors Bhd chief executive officer Tan Beng Wah says the company will continue with its plans to expand its agency force.
“At the end of 2008, we had close to 7,000 agents. We are targeting to recruit 2,500 agents this year,” he says.
According to FMUTM, it has not seen any significant number of unit trust consultants exiting the industry last year.
“For the year, it was less than 10%, which is much better than in any agency-related industry. The consultants are in for the long haul as they understand the recent market volatility is temporary,” says Ya’acob.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
INVESTORS today are presented with attractive opportunities as considerable value has emerged from the downward spiral in asset values.
Many fund managers think the worst would soon be over and the markets on their way to recovery although it may be fairly muted given the severity of the losses incurred globally.
HwangDBS Investment Management Bhd chief executive officer and executive director Teng Chee Wai notes that investors may start investing again as they digest the bleak economic data in the first quarter of 2009.
“In fact, some investors have already been taking advantage of the lacklustre market to invest in equities that are now trading at relatively attractive prices,” he adds.
In 2008, every asset class – equities, bonds, commodities and properties went through a downward spiral.
Singapore’s Straits Times Index, Hong Kong’s Hang Seng and Japan’s Nikkei 225 plunged by more than 40% while crude oil was down 55% last year.
Dragged down by the equities markets, the net asset value (NAV) of the unit trust industry has dropped from RM169bil at end-2007 to RM135bil at end- November 2008. However, the 20% drop in NAV is relatively lower compared with the decline in the commodity and stock market indices.
“This is attributed to the nature of unit trusts – a collective investment scheme with reduced risks due to a diversified portfolio spread across securities, asset classes, managers and countries,” says Federation of Malaysian Unit Trust Managers (FMUTM) president Tunku Datuk Ya’acob Tunku Abdullah.
While volatility and poor economic conditions may persist in the near term, he says a well-diversified portfolio in a unit trust fund will be able to reduce risks and provide better cushion against market fluctuations.
Other industry experts observe that the general investor sentiment towards unit trusts, especially equity-based ones, will continue to be negative this year due to the crisis.
That is also due to the fact that many investors would be tightening their disposal or investible income in anticipation of a sharp economic slowdown.
However, they note that Malaysia’s banking system is still flushed with liquidity and hence, there would be appetite for investment products.
“Moreover, investors may be willing to consider investment products as we enter a phase of low interest rate environment,” HLG Unit Trust Bhd acting chief executive officer and executive director Teo Chang Seng said.
As such, the industry is expected to see more capital-protected funds being launched this year along with other low-risk fixed income products.
“In challenging times, many investors resort to the common notion that cash is king. They are also more concerned about capital preservation instead of potential yield,” says CIMB-Principal Asset Management Bhd chief executive officer J. Campbell Tupling.
Teng of HwangDBS notes that while the performance of some of its equity-based funds has been affected, its cash and money market funds have shown positive growth, year-on-year.
In view of the falling markets last year, most fund managers reported lower overall total sales and significant decrease in fund management fees as NAV of equity funds, whether local or global, declined considerably.
But on a positive note, redemptions were also considerably lower than in previous years, which is a good sign that investors are holding on rather than making panic sales.
The industry, which expects a rather quiet period this year, is stepping up its housekeeping efforts to improve internal and external efficiencies as well as enhance its delivery system.
For example, Pacific Mutual Fund Bhd is upgrading its administration and customer interface systems to achieve better connection and communication with its direct and third-party customers.
At the same time, HwangDBS is focusing on staff development and rewards to improve investors’ experience and after-sales service.
CIMB Wealth Advisors Bhd chief executive officer Tan Beng Wah says the company will continue with its plans to expand its agency force.
“At the end of 2008, we had close to 7,000 agents. We are targeting to recruit 2,500 agents this year,” he says.
According to FMUTM, it has not seen any significant number of unit trust consultants exiting the industry last year.
“For the year, it was less than 10%, which is much better than in any agency-related industry. The consultants are in for the long haul as they understand the recent market volatility is temporary,” says Ya’acob.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Friday, January 16, 2009
CIMB-Principal eyes bigger share in unit trust market
TheStar
KUALA LUMPUR: Despite the gloomy economic conditions, CIMB-Principal Asset Management Bhd hopes to increase its market share in the unit trust industry by 0.5%.
Chief executive officer J. Campbell Tupling said the company had increased its share by 0.5% in 2008 and hoped to maintain its performance, going forward.
“We expect the economy to be sluggish in the first half of the year and pick up after June,” he said after the launch of the CIMB-Principal Opportunistic Bond Fund yesterday.
Acccording to Tupling, CIMB’s latest fund offered investors access to non-ringgit convertible bonds issued by blue chip companies from the Asia-Pacific region.
“The sell-off in equities during the second half of 2008 has resulted in attractive prices for high-grade corporate bonds,” he said.
“With the fund, fixed-income investors may obtain better returns from high-quality and relatively low-risk corporate bonds. At such times when the Malaysian fixed deposits are giving only about 3.5% and maybe less moving forward, investors are well-compensated with this fund,” Tupling said.
According to CIMB-Principal chief investment officer Raymond Tang, the three-year close-ended fund would pursue a buy-and-hold strategy, meaning that the portfolio would be buffered from future interest rate fluctuations.
“I believe this fund offers retail investors the best opportunity to potentially make money in the credit bond market, provided they maintain their investment until the fund matures,” added Tang.
Investors can also exit the fund early if total performance reaches 40% before the fund matures and the fund manager exercises its discretion to terminate the fund and return the investment proceeds before maturity.
“This is possible if equity prices rally sharply and the convertible bonds can be sold at a premium,” Tang said.
Tupling said that retail investors could expect a better outlook for bond funds this year with Bank Negara emphasising a pro-growth policy to encourage spending by lowering interest rates further.
The Opportunistic Bond Fund has an approved size of 200 million units and an initial selling price of RM1 per unit.
It will invest up to 98% of the fund’s net asset value in non-ringgit-denominated bonds as well as other fixed and floating rate instruments issued or backed by governments, government agencies, supernational organisations, corporates and other issuers in the Asia-Pacific region.
The remainder of the fund will be placed in liquid assets, such as bank deposits, for liquidity and ancillary purposes.
Tang said the company would launch similar funds in the near future, depending on the response from retail investors and the global market situation. As at Dec 31, CIMB-Principal had total assets of RM16.4bil under management.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Despite the gloomy economic conditions, CIMB-Principal Asset Management Bhd hopes to increase its market share in the unit trust industry by 0.5%.
Chief executive officer J. Campbell Tupling said the company had increased its share by 0.5% in 2008 and hoped to maintain its performance, going forward.
“We expect the economy to be sluggish in the first half of the year and pick up after June,” he said after the launch of the CIMB-Principal Opportunistic Bond Fund yesterday.
Acccording to Tupling, CIMB’s latest fund offered investors access to non-ringgit convertible bonds issued by blue chip companies from the Asia-Pacific region.
“The sell-off in equities during the second half of 2008 has resulted in attractive prices for high-grade corporate bonds,” he said.
“With the fund, fixed-income investors may obtain better returns from high-quality and relatively low-risk corporate bonds. At such times when the Malaysian fixed deposits are giving only about 3.5% and maybe less moving forward, investors are well-compensated with this fund,” Tupling said.
According to CIMB-Principal chief investment officer Raymond Tang, the three-year close-ended fund would pursue a buy-and-hold strategy, meaning that the portfolio would be buffered from future interest rate fluctuations.
“I believe this fund offers retail investors the best opportunity to potentially make money in the credit bond market, provided they maintain their investment until the fund matures,” added Tang.
Investors can also exit the fund early if total performance reaches 40% before the fund matures and the fund manager exercises its discretion to terminate the fund and return the investment proceeds before maturity.
“This is possible if equity prices rally sharply and the convertible bonds can be sold at a premium,” Tang said.
Tupling said that retail investors could expect a better outlook for bond funds this year with Bank Negara emphasising a pro-growth policy to encourage spending by lowering interest rates further.
The Opportunistic Bond Fund has an approved size of 200 million units and an initial selling price of RM1 per unit.
It will invest up to 98% of the fund’s net asset value in non-ringgit-denominated bonds as well as other fixed and floating rate instruments issued or backed by governments, government agencies, supernational organisations, corporates and other issuers in the Asia-Pacific region.
The remainder of the fund will be placed in liquid assets, such as bank deposits, for liquidity and ancillary purposes.
Tang said the company would launch similar funds in the near future, depending on the response from retail investors and the global market situation. As at Dec 31, CIMB-Principal had total assets of RM16.4bil under management.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Thursday, January 15, 2009
AmInvestment declares two sen final distribution for ETF
TheEdge
KUALA LUMPUR: AmInvestment Bank Group has declared a final income distribution of two sen per unit for its exchange-traded fund (ETF), ABF Malaysia Bond Index Fund, for the financial year ended Dec 31, 2008 (FY08).
With that, AmInvestment said the fund paid a total of 3.55 sen per unit in income distribution for FY08, representing a yield of 3.4% based on the net asset value (NAV) of RM1.0487 per unit as at Dec 31, 2007.
“As we cross the threshold of 2009, we have entered a period of global economic slowdown coupled with low interest rates and widening credit spreads. Hence, a sovereign bond ETF such as ABF Malaysia Bond Index Fund would be the ETF of choice,” said Datin Maznah Mahbob, chief executive officer of funds management division of AmInvestment Bank Group.
“This fund is designed for investors who seek an index-based approach to investing in a portfolio of government or sovereign bonds. It can be used as a trading instrument and it gives investors more flexibility,” she added.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: AmInvestment Bank Group has declared a final income distribution of two sen per unit for its exchange-traded fund (ETF), ABF Malaysia Bond Index Fund, for the financial year ended Dec 31, 2008 (FY08).
With that, AmInvestment said the fund paid a total of 3.55 sen per unit in income distribution for FY08, representing a yield of 3.4% based on the net asset value (NAV) of RM1.0487 per unit as at Dec 31, 2007.
“As we cross the threshold of 2009, we have entered a period of global economic slowdown coupled with low interest rates and widening credit spreads. Hence, a sovereign bond ETF such as ABF Malaysia Bond Index Fund would be the ETF of choice,” said Datin Maznah Mahbob, chief executive officer of funds management division of AmInvestment Bank Group.
“This fund is designed for investors who seek an index-based approach to investing in a portfolio of government or sovereign bonds. It can be used as a trading instrument and it gives investors more flexibility,” she added.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Global fund managers sees recovery this year: Survey
BusinessTimes
GLOBAL fund managers are optimistic that markets in most regions will begin to recover this year, according to a survey by consulting firm Watson Wyatt.
The fund managers, who collectively have assets under management of over US$10 trillion (US$1 = RM3.57), indicate that the period of recovery in most markets will be protracted.
They believe that the influence of hedge funds and investment banks will decline significantly while that of pension and sovereign funds will rise.
The respondents also expect to see their institutional clients opting for more conservative investment strategies as well as prioritising greater risk control.
"The views expressed by this influential group give us some valuable insights and should inform how, why and when key investment decisions are made," Carl Hess, Watson Wyatt global head of investment consulting, said in a press statement released in Washington.
According to the survey, which was conducted at the end of 2008, managers have overall bullish views of returns on public equities, investment grade bonds, high yield bonds and emerging markets over the next five years.
However, they hold fairly bearish views of returns on hedge funds, government bonds, money market and real estate during the same period. They remain generally neutral on private equities and currencies.
On equities, respondents expect stock markets to revert to historical return levels by 2012, while projections about returns in 2009 vary significantly by region.
According to the median view of respondents, the anticipated returns on global equities in 2009 is 6.7 per cent, with the US, the UK, eurozone, Australian, Japanese and other Asian equity markets are expected to deliver 8.8 per cent, five per cent, 5.5 per cent, eight per cent, 5 per cent and 10 per cent, respectively.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
GLOBAL fund managers are optimistic that markets in most regions will begin to recover this year, according to a survey by consulting firm Watson Wyatt.
The fund managers, who collectively have assets under management of over US$10 trillion (US$1 = RM3.57), indicate that the period of recovery in most markets will be protracted.
They believe that the influence of hedge funds and investment banks will decline significantly while that of pension and sovereign funds will rise.
The respondents also expect to see their institutional clients opting for more conservative investment strategies as well as prioritising greater risk control.
"The views expressed by this influential group give us some valuable insights and should inform how, why and when key investment decisions are made," Carl Hess, Watson Wyatt global head of investment consulting, said in a press statement released in Washington.
According to the survey, which was conducted at the end of 2008, managers have overall bullish views of returns on public equities, investment grade bonds, high yield bonds and emerging markets over the next five years.
However, they hold fairly bearish views of returns on hedge funds, government bonds, money market and real estate during the same period. They remain generally neutral on private equities and currencies.
On equities, respondents expect stock markets to revert to historical return levels by 2012, while projections about returns in 2009 vary significantly by region.
According to the median view of respondents, the anticipated returns on global equities in 2009 is 6.7 per cent, with the US, the UK, eurozone, Australian, Japanese and other Asian equity markets are expected to deliver 8.8 per cent, five per cent, 5.5 per cent, eight per cent, 5 per cent and 10 per cent, respectively.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Tuesday, January 13, 2009
Crisis offsets Islamic fund management 2008 gains
TheEdge
LONDON: Market volatility wiped out all the asset gains made by the Islamic fund management industry in the year to September 2008, research and data provider Cerulli Associates said on Wednesday.
Islamic or syariah-compliant funds posted an 8% increase in the year to September 2008, due to new investments and returns on assets, Cerulli said. But assets were likely to have fallen to 2007 levels or even further by the end of last year, its report based on a sample of global asset managers said.
Syariah-compliant fund managers had assets of US$65 billion (RM227.5 billion) at the end of the third quarter 2008, including assets managed via discretionary mandates for institutions and high net-worth individuals and mutual funds.
The Boston-based company said Islamic-compliant equity investments performed like their conventional counterparts, while sukuk or Islamic bonds remained “rare” due to the illiquidity and scarcity of the underlying securities.
Once markets stabilised this industry could potentially expand at a rate of above 10% a year, driven by the large amount of Islamic bank deposits and increased regulatory support from governments, the report said.
Islamic mutual funds alone accounted for US$35 billion — up from US$23.2 billion gathered in 2005. — Reuters
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
LONDON: Market volatility wiped out all the asset gains made by the Islamic fund management industry in the year to September 2008, research and data provider Cerulli Associates said on Wednesday.
Islamic or syariah-compliant funds posted an 8% increase in the year to September 2008, due to new investments and returns on assets, Cerulli said. But assets were likely to have fallen to 2007 levels or even further by the end of last year, its report based on a sample of global asset managers said.
Syariah-compliant fund managers had assets of US$65 billion (RM227.5 billion) at the end of the third quarter 2008, including assets managed via discretionary mandates for institutions and high net-worth individuals and mutual funds.
The Boston-based company said Islamic-compliant equity investments performed like their conventional counterparts, while sukuk or Islamic bonds remained “rare” due to the illiquidity and scarcity of the underlying securities.
Once markets stabilised this industry could potentially expand at a rate of above 10% a year, driven by the large amount of Islamic bank deposits and increased regulatory support from governments, the report said.
Islamic mutual funds alone accounted for US$35 billion — up from US$23.2 billion gathered in 2005. — Reuters
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Thursday, January 8, 2009
Distributions for seven funds
TheStar
KUALA LUMPUR: Public Mutual Bhd and CMS Trust Management Bhd have declared income distributions for three and four of its funds respectively for the financial year ended Dec 31.
Unitholders of Public Savings Fund, Public Focus Select Fund and Public Islamic Enhanced Bond Fund would receive gross distributions of 7.5 sen, 1.25 sen and 1.75 sen per unit respectively, Public Mutual said in a statement.
Public Mutual has 67 funds under management. As at Nov 28, the total net asset value of the funds managed by the company was RM21.9bil.
Meanwhile, CMS Trust’s CMS Premier Fund, CMS Islamic Fund, CMS Balanced Fund and CMS Islamic Balanced Fund would distribute 3.4 sen, 4.4 sen, 3.9 sen and 4.4 sen respectively.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Public Mutual Bhd and CMS Trust Management Bhd have declared income distributions for three and four of its funds respectively for the financial year ended Dec 31.
Unitholders of Public Savings Fund, Public Focus Select Fund and Public Islamic Enhanced Bond Fund would receive gross distributions of 7.5 sen, 1.25 sen and 1.75 sen per unit respectively, Public Mutual said in a statement.
Public Mutual has 67 funds under management. As at Nov 28, the total net asset value of the funds managed by the company was RM21.9bil.
Meanwhile, CMS Trust’s CMS Premier Fund, CMS Islamic Fund, CMS Balanced Fund and CMS Islamic Balanced Fund would distribute 3.4 sen, 4.4 sen, 3.9 sen and 4.4 sen respectively.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
OSK-UOB plans 7 more funds
TheStar
KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd, which unveiled its first fund of the year yesterday, is looking to launch seven more funds this year and is aiming for an 18% to 20% expansion in its total fund size.
Chief executive officer Ho Seng Yee said OSK-UOB hoped to launch more capital-protected funds in the first half of this year and gradually introduce equity-linked funds in the second half on expectations financial markets would rebound in the latter part of the year.
With a fund size of RM3.1bil under management now, Ho said the company hoped to grow its fund size to between RM3.6bil and RM3.7bil by year-end.
Its fund size shrank to RM3bil by the end of last year from RM3.9bil in early 2008.
“We are quite happy if we can achieve 18% to 20% growth in fund size by year-end,” Ho said after launching the OSK-UOB Capital Protected KLCI Advantage Fund, its first fund this year.
Although economists have estimated the country’s gross domestic product (GDP) growth at around 1% to 3%, Ho said he believed the financial markets would gradually recover in the second half or by the fourth quarter when the effects of worldwide stimulus packages kicked in.
“We hope to launch more capital-preserved and easier to understand funds, such as this one,” he said, referring to the OSK-UOB Capital Protected KLCI Advantage Fund.
“Investors who are familiar with KL Composite Index (KLCI) will find this (fund) close to their hearts and gradually regain their confidence.”
The OSK-UOB Capital Protected KLCI Advantage Fund is a two-year closed-end fund linked to the KLCI that offers investors protection of their capital.
“We expect the KLCI to stay within 850 to 950 points,” Ho said.
The fund’s principal strategy is to invest 90% to 97% of the capital raised in primarily a two-year zero coupon negotiable deposit instrument, and up to 10% in over-the-counter options issued on the KLCI, he said.
The options might yield a potential maximum return of 17% per annum, Ho said.
“Up to next year, we expect to see KLCI intermittently trending lethargically up and down. Hence this fund will offer investors opportunity to capitalise on the interplay of the upside potential and downside risks of the KLCI,” he said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd, which unveiled its first fund of the year yesterday, is looking to launch seven more funds this year and is aiming for an 18% to 20% expansion in its total fund size.
Chief executive officer Ho Seng Yee said OSK-UOB hoped to launch more capital-protected funds in the first half of this year and gradually introduce equity-linked funds in the second half on expectations financial markets would rebound in the latter part of the year.
With a fund size of RM3.1bil under management now, Ho said the company hoped to grow its fund size to between RM3.6bil and RM3.7bil by year-end.
Its fund size shrank to RM3bil by the end of last year from RM3.9bil in early 2008.
“We are quite happy if we can achieve 18% to 20% growth in fund size by year-end,” Ho said after launching the OSK-UOB Capital Protected KLCI Advantage Fund, its first fund this year.
Although economists have estimated the country’s gross domestic product (GDP) growth at around 1% to 3%, Ho said he believed the financial markets would gradually recover in the second half or by the fourth quarter when the effects of worldwide stimulus packages kicked in.
“We hope to launch more capital-preserved and easier to understand funds, such as this one,” he said, referring to the OSK-UOB Capital Protected KLCI Advantage Fund.
“Investors who are familiar with KL Composite Index (KLCI) will find this (fund) close to their hearts and gradually regain their confidence.”
The OSK-UOB Capital Protected KLCI Advantage Fund is a two-year closed-end fund linked to the KLCI that offers investors protection of their capital.
“We expect the KLCI to stay within 850 to 950 points,” Ho said.
The fund’s principal strategy is to invest 90% to 97% of the capital raised in primarily a two-year zero coupon negotiable deposit instrument, and up to 10% in over-the-counter options issued on the KLCI, he said.
The options might yield a potential maximum return of 17% per annum, Ho said.
“Up to next year, we expect to see KLCI intermittently trending lethargically up and down. Hence this fund will offer investors opportunity to capitalise on the interplay of the upside potential and downside risks of the KLCI,” he said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Wednesday, January 7, 2009
Fund managers cautious despite rally
TheStar
Many stay on sidelines while waiting for right time to invest
PETALING JAYA: The recent “mini” stock market rallies on rising crude palm oil (CPO) prices ushered in some much needed cheer in the new year, but fund managers have generally remained cautious.
Kurnia Insurans Malaysia Bhd chief investment officer Pankaj Kumar said it was likely that most fund managers and investment heads would channel their funds into several asset classes to reduce risk.
“They might be placing more of the funds in corporate bonds which are a safer bet, compared with investing in the stock market under the current global economic climate,” he told StarBiz yesterday.
A fund manager with a local bank said fund managers were waiting for more positive and consistent signals before investing in the stock market in a bigger way.
“The worst is likely not over and there is too much volatility in the market to make an assessment,” the fund manager said.
Areca Capital Sdn Bhd chief executive officer Danny Wong said most fund managers would likely wait until the release of fourth quarter financial results before deciding to invest.
“They want to see if the corporate results meet their expectations and also whether the general global economic conditions are conducive to invest more in the market,” he said.
Many fund managers were choosing to stay on the sidelines and waiting for the opportune time to invest, Wong added.
“When the investment climate is right, they will then not lose out on the opportunity to enter the stock market in a big way,” he said.
Meanwhile, Pankaj said the global economic downturn also presented opportunities for cash-rich institutions to buy into battered stocks that had strong fundamentals and a potential upswing in their share prices in the medium to longer term.
“Despite the downturn every economic crisis presents opportunities for those able to capitalise on the situation,” he said, adding that state agencies such as Employees Provident Fund (EPF) and Khazanah Nasional Bhd should consider investing in undervalued stocks, locally or abroad.
Pankaj said some of the stocks, especially those in the United States were worth looking at as their share prices had fallen significantly.
He said while the current downturn could not be compared with the Great Depression of the 1920s and 30s, the global economic crisis would undeniably impact stock markets around the world, including Bursa Malaysia.
“Malaysia’s economy and stock market are intrinsically link to the US economy,” Pankaj noted.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Many stay on sidelines while waiting for right time to invest
PETALING JAYA: The recent “mini” stock market rallies on rising crude palm oil (CPO) prices ushered in some much needed cheer in the new year, but fund managers have generally remained cautious.
Kurnia Insurans Malaysia Bhd chief investment officer Pankaj Kumar said it was likely that most fund managers and investment heads would channel their funds into several asset classes to reduce risk.
“They might be placing more of the funds in corporate bonds which are a safer bet, compared with investing in the stock market under the current global economic climate,” he told StarBiz yesterday.
A fund manager with a local bank said fund managers were waiting for more positive and consistent signals before investing in the stock market in a bigger way.
“The worst is likely not over and there is too much volatility in the market to make an assessment,” the fund manager said.
Areca Capital Sdn Bhd chief executive officer Danny Wong said most fund managers would likely wait until the release of fourth quarter financial results before deciding to invest.
“They want to see if the corporate results meet their expectations and also whether the general global economic conditions are conducive to invest more in the market,” he said.
Many fund managers were choosing to stay on the sidelines and waiting for the opportune time to invest, Wong added.
“When the investment climate is right, they will then not lose out on the opportunity to enter the stock market in a big way,” he said.
Meanwhile, Pankaj said the global economic downturn also presented opportunities for cash-rich institutions to buy into battered stocks that had strong fundamentals and a potential upswing in their share prices in the medium to longer term.
“Despite the downturn every economic crisis presents opportunities for those able to capitalise on the situation,” he said, adding that state agencies such as Employees Provident Fund (EPF) and Khazanah Nasional Bhd should consider investing in undervalued stocks, locally or abroad.
Pankaj said some of the stocks, especially those in the United States were worth looking at as their share prices had fallen significantly.
He said while the current downturn could not be compared with the Great Depression of the 1920s and 30s, the global economic crisis would undeniably impact stock markets around the world, including Bursa Malaysia.
“Malaysia’s economy and stock market are intrinsically link to the US economy,” Pankaj noted.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Tuesday, January 6, 2009
Public Mutual declares distributions for 3 funds
PublicMutual
Public Bank’s wholly-owned subsidiary, Public Mutual declares distributions for three of its funds. The total gross distributions declared are for financial year ended 31 December 2008:
Public Savings Fund - 7.50 sen
Public Focus Select Fund - 1.25 sen
Public Islamic Enhanced Bond Fund - 1.75 sen
Public Mutual’s Chairman Tan Sri Dato’ Sri Dr. Teh Hong Piow said Public Savings Fund which was launched in 1981, is our maiden fund. “Public Savings Fund aims to achieve long-term capital appreciation while at the same time producing a reasonable level of income,” he added.
Meanwhile, Public Focus Select Fund which was launched in 2004, aims to achieve capital growth through investments in medium-sized companies in term of market capitalisation from diversified economic sectors.
As for Public Islamic Enhanced Bond Fund, it was launched in 2006 with the aim of providing a combination of annual income and modest capital growth primarily through a portfolio allocation across Islamic debt securities and equities that comply with Shariah requirements.
Public Mutual is Malaysia’s largest private unit trust company with 67 funds under management. It has over 2,000,000 accountholders serviced by over 40,000 unit trust consultants. As at 28 November 2008, the total net asset value of the funds managed by the company was RM21.9 billion.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Public Bank’s wholly-owned subsidiary, Public Mutual declares distributions for three of its funds. The total gross distributions declared are for financial year ended 31 December 2008:
Public Savings Fund - 7.50 sen
Public Focus Select Fund - 1.25 sen
Public Islamic Enhanced Bond Fund - 1.75 sen
Public Mutual’s Chairman Tan Sri Dato’ Sri Dr. Teh Hong Piow said Public Savings Fund which was launched in 1981, is our maiden fund. “Public Savings Fund aims to achieve long-term capital appreciation while at the same time producing a reasonable level of income,” he added.
Meanwhile, Public Focus Select Fund which was launched in 2004, aims to achieve capital growth through investments in medium-sized companies in term of market capitalisation from diversified economic sectors.
As for Public Islamic Enhanced Bond Fund, it was launched in 2006 with the aim of providing a combination of annual income and modest capital growth primarily through a portfolio allocation across Islamic debt securities and equities that comply with Shariah requirements.
Public Mutual is Malaysia’s largest private unit trust company with 67 funds under management. It has over 2,000,000 accountholders serviced by over 40,000 unit trust consultants. As at 28 November 2008, the total net asset value of the funds managed by the company was RM21.9 billion.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Unit trust still a good bet for the long term
TheEdge
KUALA LUMPUR: The past 12 months has seen the erosion of wealth in virtually every type of non-fixed income investment, and unit trust funds have not been spared.
Despite offering a modicum of security compared to traditional equities owing to its large pool of investors and its diverse portfolio of investments, trust funds have nonetheless declined alongside market indices, albeit at a slower rate.
According to data from the Securities Commission, the total net asset value (NAV) in Malaysia dropped by more than 20% to RM135.87 billion in November from RM170.1 billion in January.
There is, however, an anomaly within the figure, namely the decline in the NAV of Islamic-based funds. Unlike conventional funds’ NAV, which plunged 22% to RM119.77 billion in November from RM153.7 billion in January, Islamic funds declined only 2% to RM16.11 billion from RM16.4 billion.
A fund manager noted that this could be due to the fact that Islamic funds were not traded intensively and tended to lag behind the movement of conventional funds.
Case in point is the fact that the total NAV of Islamic funds only peaked in June with an NAV of RM17.98 billion, up 10% from January before starting its downwards slide. By that time, conventional funds’ NAV had already started to shed value since its peak in January.
On the whole, September’s figure also marked the first time that the total NAV failed to show positive year-on-year growth in at least four years. Subsequently, total NAV for September shrank 4% compared to the same month in 2007.
According to Eric Wong, Hong Kong head of research for global fund analyst Thomson Reuters Lipper, the last 12 months has seen unprecedented movements in the fund industry for both Malaysia and the region.
“The year-to-date (January to November) average loss of all funds registered for sale in Malaysia is the largest (-23.10%) since its average loss for the entire year in 1997(-43.30%),” Wong said in an email reply to The Edge Financial Daily.
He added that a similar trend had been occurring in other major regional markets such as Thailand, Hong Kong, Taiwan, Singapore and China.
The silver lining for Malaysian investors, however, is that the Malaysian fund industry has incurred significantly smaller losses then that of most other Asian countries. This finding is not surprising as the Kuala Lumpur Stock Exchange has outperformed other countries in the region.
Wong believed there were other considerations as well.
“This may probably be attributed to the capital control imposed by the Malaysian government, rendering foreign investors less interested to invest in Malaysian equities and bonds,” Wong said. “Their relative low participation reduces the volatility of Malaysian equities and bonds.
“This, coupled with the majority of funds that are registered for sale in Malaysia, are invested in Malaysian equities and bonds, limits the average loss of Malaysian funds in comparison to those in other Asian countries.”
Responding to reports that a majority of equity funds in Malaysia had increased their portfolio allocation to cash or other liquid securities in Malaysia as a precaution against a continued slump in the market, Wong said some funds made the switch to cash in the third quarter.
However, there was no evidence that a majority of equity funds were doing so, he added.
Time to buy and what to buy?
With equities trading at historic lows, common wisdom suggests that now would be a good time to cherry pick for good stocks at cheap prices. By extension, this would mean that equity funds also would trade cheaply.
Nonetheless, Wong believed it was premature to conclude that equities were undervalued, saying it was likely that equities would continue their slide in 2009.
“The values of equities are basically determined by two components: interest rate and earnings growth. Low interest rates and expectation that central banks around the globe will continue to lower interest rates will continue to support equities,” he said.
“However, with reports showing the global economic environment is projected to deteriorate further in 2009, the downwards trend of corporate earnings growth is less likely to reverse in the coming quarters.
“Such a scenario means equities will still face significant downside risk on their valuation in 2009 and, hence, investors should not at this stage park their capital in equity funds.”
Wong added that the same was likely true for commodity funds, which were traditionally even more volatile than equity funds.
For investors who are concerned about preserving the value of their investments, Wong advised continued investment in bond-linked and money market funds, although yields had fallen to very low levels recently.
Should investors stay away from unit trusts?
No, said Robert Foo, financial planner and managing director of MyFP Services Sdn Bhd.
So long as investing for the long-term is concerned, investors shouldn’t concern themselves too much with the current state of the market, as markets will grow in the long term.
Unit trust funds, he added, were not “opportunistic investments” that would yield massive returns in the short-term. As a managed basket of investments, funds offer the benefit of professional management in exchange for more normalised returns on investments.
“When we talk to clients, we tell them that they have to look at it from a period of time of five years and above,” Foo said. “Our objective is to help our clients achieve their investment targets and this means rebalancing their portfolios depending on the condition of the market.”
Meanwhile, markets will rise and fall in the long-term, he said. What investors have to do is to rebalance their portfolios during both the peaks and the troughs. In that respect, it is essential for investors to establish investment goals that correspond with their tolerance for risk.
Foo said a disciplined approach would allow for greater returns in the long-term. His clients, he said, averaged between 7%-8% in returns although they had differing investment targets.
“When the market was way up, we also rebalanced our clients’ portfolios. We said, ‘Look, 60% return is absurd for a fund, so we need to rebalance,’ and we rebalanced our clients down,” he said.
As for asset classes of funds, Foo said the type of fund was not as important as the revenue model of the underlying investment and consistency in performance, although he said MyFP’s policy was to stay away from “theme-based funds” such as those localised in a specific region or commodity.
Foo also advised that investors refrain from going on a purchasing spree based on the “cheapness” of a stock or fund, as pricing was not a good indicator of the value of the share.
“At the end of the day, it’s not the price that determines the value of the stock — that kind of analysis is too simplistic. You have to look at the intrinsic value of the underlying equity to determine that,” Foo said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: The past 12 months has seen the erosion of wealth in virtually every type of non-fixed income investment, and unit trust funds have not been spared.
Despite offering a modicum of security compared to traditional equities owing to its large pool of investors and its diverse portfolio of investments, trust funds have nonetheless declined alongside market indices, albeit at a slower rate.
According to data from the Securities Commission, the total net asset value (NAV) in Malaysia dropped by more than 20% to RM135.87 billion in November from RM170.1 billion in January.
There is, however, an anomaly within the figure, namely the decline in the NAV of Islamic-based funds. Unlike conventional funds’ NAV, which plunged 22% to RM119.77 billion in November from RM153.7 billion in January, Islamic funds declined only 2% to RM16.11 billion from RM16.4 billion.A fund manager noted that this could be due to the fact that Islamic funds were not traded intensively and tended to lag behind the movement of conventional funds.
Case in point is the fact that the total NAV of Islamic funds only peaked in June with an NAV of RM17.98 billion, up 10% from January before starting its downwards slide. By that time, conventional funds’ NAV had already started to shed value since its peak in January.
On the whole, September’s figure also marked the first time that the total NAV failed to show positive year-on-year growth in at least four years. Subsequently, total NAV for September shrank 4% compared to the same month in 2007.According to Eric Wong, Hong Kong head of research for global fund analyst Thomson Reuters Lipper, the last 12 months has seen unprecedented movements in the fund industry for both Malaysia and the region.
“The year-to-date (January to November) average loss of all funds registered for sale in Malaysia is the largest (-23.10%) since its average loss for the entire year in 1997(-43.30%),” Wong said in an email reply to The Edge Financial Daily.
He added that a similar trend had been occurring in other major regional markets such as Thailand, Hong Kong, Taiwan, Singapore and China.
The silver lining for Malaysian investors, however, is that the Malaysian fund industry has incurred significantly smaller losses then that of most other Asian countries. This finding is not surprising as the Kuala Lumpur Stock Exchange has outperformed other countries in the region.
Wong believed there were other considerations as well.
“This may probably be attributed to the capital control imposed by the Malaysian government, rendering foreign investors less interested to invest in Malaysian equities and bonds,” Wong said. “Their relative low participation reduces the volatility of Malaysian equities and bonds.
“This, coupled with the majority of funds that are registered for sale in Malaysia, are invested in Malaysian equities and bonds, limits the average loss of Malaysian funds in comparison to those in other Asian countries.”
Responding to reports that a majority of equity funds in Malaysia had increased their portfolio allocation to cash or other liquid securities in Malaysia as a precaution against a continued slump in the market, Wong said some funds made the switch to cash in the third quarter.
However, there was no evidence that a majority of equity funds were doing so, he added.
Time to buy and what to buy?
With equities trading at historic lows, common wisdom suggests that now would be a good time to cherry pick for good stocks at cheap prices. By extension, this would mean that equity funds also would trade cheaply.
Nonetheless, Wong believed it was premature to conclude that equities were undervalued, saying it was likely that equities would continue their slide in 2009.
“The values of equities are basically determined by two components: interest rate and earnings growth. Low interest rates and expectation that central banks around the globe will continue to lower interest rates will continue to support equities,” he said.
“However, with reports showing the global economic environment is projected to deteriorate further in 2009, the downwards trend of corporate earnings growth is less likely to reverse in the coming quarters.
“Such a scenario means equities will still face significant downside risk on their valuation in 2009 and, hence, investors should not at this stage park their capital in equity funds.”
Wong added that the same was likely true for commodity funds, which were traditionally even more volatile than equity funds.
For investors who are concerned about preserving the value of their investments, Wong advised continued investment in bond-linked and money market funds, although yields had fallen to very low levels recently.
Should investors stay away from unit trusts?
No, said Robert Foo, financial planner and managing director of MyFP Services Sdn Bhd.
So long as investing for the long-term is concerned, investors shouldn’t concern themselves too much with the current state of the market, as markets will grow in the long term.
Unit trust funds, he added, were not “opportunistic investments” that would yield massive returns in the short-term. As a managed basket of investments, funds offer the benefit of professional management in exchange for more normalised returns on investments.
“When we talk to clients, we tell them that they have to look at it from a period of time of five years and above,” Foo said. “Our objective is to help our clients achieve their investment targets and this means rebalancing their portfolios depending on the condition of the market.”
Meanwhile, markets will rise and fall in the long-term, he said. What investors have to do is to rebalance their portfolios during both the peaks and the troughs. In that respect, it is essential for investors to establish investment goals that correspond with their tolerance for risk.
Foo said a disciplined approach would allow for greater returns in the long-term. His clients, he said, averaged between 7%-8% in returns although they had differing investment targets.
“When the market was way up, we also rebalanced our clients’ portfolios. We said, ‘Look, 60% return is absurd for a fund, so we need to rebalance,’ and we rebalanced our clients down,” he said.
As for asset classes of funds, Foo said the type of fund was not as important as the revenue model of the underlying investment and consistency in performance, although he said MyFP’s policy was to stay away from “theme-based funds” such as those localised in a specific region or commodity.
Foo also advised that investors refrain from going on a purchasing spree based on the “cheapness” of a stock or fund, as pricing was not a good indicator of the value of the share.
“At the end of the day, it’s not the price that determines the value of the stock — that kind of analysis is too simplistic. You have to look at the intrinsic value of the underlying equity to determine that,” Foo said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
AmInvestment Bank eyes RM100mil with new fund
TheStar
KUALA LUMPUR: AmInvestment Bank Bhd aims to attract RM100mil for its latest syariah-based capital protected fund – AmStaples – by Jan 30.
The fund has yielded RM15mil in take-up rates since its soft launch on Dec 17.
AmStaples provides a contracted fixed income with a minimum 6% return in the first 12 months and 2% at maturity, which is 33 months.
At least 95% of the net asset value of the fund would be invested in 33-month tenured certificates denominated in Australian dollars and 5% in commodities such as corn and soybean as well as stocks such as Kraft Foods Inc and Nestle SA.
The fund is also exposed to the performance of the Australian dollar against the ringgit.
“The Australian dollar is expected to appreciate over the medium to long term since Australia, a major commodity producer, will benefit when demand for commodities pick up in line with the global recovery,” said chief executive officer Datin Maznah Mahbob after the fund launch.
Maznah said that globally, the outlook for the food and agri-business industry remained positive, driven by high demand for food and biofuel.
“Demand for staple foods is unlikely to drop despite the unfavourable economic conditions.
“It is one of the investment opportunities during recessions because such assets are expected to remain resilient during this period,” she said.
AmInvestment retail funds director (funds management) Ng Chze How was confident of a good take-up rate for the fund, marketed under the group’s retail brand AmMutual.
Ng said most of AmMutual’s 43 unit trust funds had outperformed the market’s benchmark in 2008.
For AmStaples, he said a special incentive would be given to early investors.
“They will get a ‘headstart coupon’ of 15% returns. If the investment in the food staples (of AmStaples) remains flat at maturity, the investors will still get 15% return.
“But if the food staples move up by 5%, the investors will gain 20% return. If the investment drops by 10%, the investors’ return will still be positive at 5%,” he said.
As at Dec 31, the total assets under AmMutual management were valued at RM16bil.
Ng said that of the 43 funds managed by AmMutual, about 20 were based on fixed income, contributing 65% of the total fund size.
“In line with the group’s overall targets, the fund management division aims to double its business in terms of revenue and economic profit by March 31, 2011.
“This year, we plan to launch eight to 10 funds,” he said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: AmInvestment Bank Bhd aims to attract RM100mil for its latest syariah-based capital protected fund – AmStaples – by Jan 30.
The fund has yielded RM15mil in take-up rates since its soft launch on Dec 17.
AmStaples provides a contracted fixed income with a minimum 6% return in the first 12 months and 2% at maturity, which is 33 months.
At least 95% of the net asset value of the fund would be invested in 33-month tenured certificates denominated in Australian dollars and 5% in commodities such as corn and soybean as well as stocks such as Kraft Foods Inc and Nestle SA.
The fund is also exposed to the performance of the Australian dollar against the ringgit.
“The Australian dollar is expected to appreciate over the medium to long term since Australia, a major commodity producer, will benefit when demand for commodities pick up in line with the global recovery,” said chief executive officer Datin Maznah Mahbob after the fund launch.
Maznah said that globally, the outlook for the food and agri-business industry remained positive, driven by high demand for food and biofuel.
“Demand for staple foods is unlikely to drop despite the unfavourable economic conditions.
“It is one of the investment opportunities during recessions because such assets are expected to remain resilient during this period,” she said.
AmInvestment retail funds director (funds management) Ng Chze How was confident of a good take-up rate for the fund, marketed under the group’s retail brand AmMutual.
Ng said most of AmMutual’s 43 unit trust funds had outperformed the market’s benchmark in 2008.
For AmStaples, he said a special incentive would be given to early investors.
“They will get a ‘headstart coupon’ of 15% returns. If the investment in the food staples (of AmStaples) remains flat at maturity, the investors will still get 15% return.
“But if the food staples move up by 5%, the investors will gain 20% return. If the investment drops by 10%, the investors’ return will still be positive at 5%,” he said.
As at Dec 31, the total assets under AmMutual management were valued at RM16bil.
Ng said that of the 43 funds managed by AmMutual, about 20 were based on fixed income, contributing 65% of the total fund size.
“In line with the group’s overall targets, the fund management division aims to double its business in terms of revenue and economic profit by March 31, 2011.
“This year, we plan to launch eight to 10 funds,” he said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Subscribe to:
Posts (Atom)